Title
Consideration of and action on approving an interlocal grant agreement with Harris County to include the Coronavirus Relief Fund (CRF) Small Cities program terms and conditions.
Body
Summary:
At the August 4, 2020 regular Deer Park City Council meeting, the City Council authorized city staff to submit a Public Assistance (PA) grant application to FEMA and to participate in the Harris County COVID-19 Small Cities Coronavirus Relief Funds (CRF) for reimbursement for COVID-19 related expenses
In order to participate in the Harris County Coronavirus Relief Fund (CRF) Small Cities program, the City is required to enter into an interlocal agreement with Harris County containing terms and conditions applicable to payments distributed in the form of grants to local units of governments from the Coronavirus Relief Fund established within section 601 of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Other state and federal requirements and conditions may apply to this grant, including but not limited to: 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.; Chapter 783 of the Texas Government Code; and the Uniform Grant Management Standards (UGMS) developed by the Comptroller of Public Accounts.
The interlocal grant agreement is attached.
The Coronavirus Relief Fund (CRF) was established by the federal CARES act, which appropriated $150 billion to assist state and local governments in addressing the economic impacts of the Coronavirus. Harris County received a direct allocation of $426 million. Harris County has established the Small City Assistance Program in an amount not to exceed $28.5 million. Each of the cities (other than the City of Houston) in Harris County is eligible to receive up to $55 per capita in reimbursement through the Harris County Small City Assistance Program. The 2018 census population for Deer Park was 33,931, which at $55 per capita equates to a maximum of $1,866,205 in reimbursement.
The FEMA PA grant provides provide up to 75% in federal reimbursement for the eligible expenses incurred. The remaining 25% must be provided by local funds. Normally, the 25% local match cannot come from other federal funds. However, a federal exception has been made for COVID-19. Therefore, once the City submits its FEMA PA request for 75% reimbursement, it can submit a request to Harris County Coronavirus Relief Funds (CRF) for the remaining 25% of eligible reimbursements. Also, some expenditures qualify for reimbursement under the Coronavirus Relief Funds that do not qualify under the FEMA PA grant program. However, each city must certify that the reimbursements Harris County CRF Small City Assistance Program:
a) are necessary expenditures incurred due to the public health emergency and governor’s disaster declaration on March 13, 2020 with respect to the Coronavirus Disease 2019 (COVID-19);
b) were not accounted for in the budget most recently approved as of March 27, 2020, for Municipality; and
c) were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020.
Fiscal/Budgetary Impact:
The Harris County CRF Small City Assistance Program can provide up to a maximum of $1,866,205 in reimbursement of eligible COVID-19 related expenses. This is in addition to the reimbursement for eligible COVID-19 related expenses though the FEMA PA grant.
Recommended action
Approve the interlocal grant agreement with Harris County to include the Coronavirus Relief Fund (CRF) Small Cities program terms and conditions.